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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: C Hudson who wrote (7489)	3/4/1999 11:07:00 AM
From: Les H	Respond to of 99985

The Yahoo Quotes and CNBC display a very-short (I believe it's daily) Short-Term Trading Index (STI) also called the ARMS index, named after its inventor Dick Arms. It measures the distribution of advancing versus declining volume against the distribution of the number of issues that are increasing in price versus those decreasing. The farther below 1 the index goes, the more concentrated the advancing volume is in fewer advancing issues. Today, the ARMS index was .36. This is because the ratio of advancing volume to declining volume was much higher than the ratio of advancing issues to declining issues. Normal activity is between .8 and 1.2. Above 1.2 the ARMS index indicates declining volume to be very concentrated --- the broader market is not being sold off as much. Common uses are the 5-day moving average of the ARMS index, also called the TRIN-5 for Trading Index, and the 10-day moving average called the TRIN-10 for intermediate term timing. Some links to follow: investor.msn.com harborside.com The concentration of volume at extremes indicated by the TRIN is coincident with the big cap stocks usually being the last ones being driven up in a market top and the last stocks to be sold off in a market bottom.